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Marketing of Fisheries
Products by Municipal
Fishermen in Panguil
Bay, Philippines
INTERNATIONAL CENTER FOR AQUACULTURE
AGRICULTURAL EXPERIMENT STATION AUBURN UNIVERSITY
R. Dennis Rouse, Director Auburn, Alabama
Research and Development Series No. 11 Project AID csd 2780
NOVEMBER 1976
4,
4 -
5555850
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121 65 - --
S!ID09 
, 98
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Map of the Panguil Bay area (scale 1:270,000). Elevations are in feet and soundings are in fathoms. (from PCGS 4604)
SUMMARY AND CONCLUSIONS
Marketing practices of municipal fishermen in the Philippines have received
little study. However, the few studies which have been conducted have been
useful in formulating nationwide development plans. Unfortunately, these na-
tionally oriented programs have not always met local needs because of problems
peculiar to specific local areas. In order to provide data for the preparation of
a localized fishery development plan, a baseline survey of fisheries resources was
made.
The findings reported here present a description of marketing practices and
problems of municipal (artisanal) fishermen around Panguil Bay, Mindanao,
Philippines.
Panguil Bay is a 219-square kilometer body of water surrounded by approxi-
mately 8,000 hectares of mangrove swamps, of which about 5,000 hectares had
been converted into fishponds. There were 89 coastal barrios (villages) with an
estimated 4,500 municipal fishermen. The outer portion of the bay was used for
fishing and the inner portion for fishing, gathering shellfish, and catching shrimp.
No commercial vessels (over 3 gross tons) were registered in the area. Commer-
cial fishing was prohibited because of the shallow depth of the bay.
Administratively the area is divided among three provinces (Lanao del Norte,
Zamboanga del Sur, and Misamis Occidental) covering 10 municipalities and
two cities. Ozamiz City is the primary commercial center. Culturally the area
is a mixture of Muslims and Christians. During the survey, sporadic trouble had
occurred with the resultant dislocation of inhabitants and disruption of business
activities.
During May through August 1975, 249 municipal fishermen were interviewed
regarding marketing practices. The interviewees came from barrios in all 10
municipalities and 2 cities adjacent to Panguil Bay. Peace and order conditions
caused the interviewers to conduct rather hasty interviews in some areas. Data
from the questionnaires were coded and transferred to punch cards for processing.
The municipal fishermen were basically living at a subsistence level. However,
lack of alternative employment opportunities kept the recruitment high. Most of
the fishermen lived along the coast, at the mouth of rivers, or on the edge of
nipa swamps. Fishing was done at night for sales the following morning.
Fishermen reported low catch volume, which they attributed to dynamite
fishing, poisons, use of illegal gear, and overcrowding of the fishing area. Fisher-
men averaged catching only a few kilograms per day. Even with the limited
catch, most of the fishermen sold the entire amount. The fish were usually
marketed within a few hours. Most were sold on the beach although some were
sold at sea and others were delivered to the dealers. Larger, high quality fish
were sold to wholesalers who shipped the fish from the area. Smaller fish were
sold to local retailers or marketed directly to consumers. While the weight of
fish was used in pricing, only 25 percent of the catch was actually weighed at
the time of sale.
Fishermen chose buyers on the basis of cash needs. Retailers paid immediate
cash. Wholesalers were able to buy because of suki arrangements, a system
under which the buyer also represented the lender and the fish were collateral
for the loan. The price paid was only sufficient to maintain the fishermen at the
subsistence level. Marketing costs were low although a customary P1.00 (U.S.
$ =P7.40) per kilogram markup existed between sales to retailers and sales to
consumers.
Fishermen borrowed for capital investments and operating (living) expenses.
All lenders except the bank required the borrower to sell the fish to the lender.
No interest was charged, but repayment was daily and the lender paid a reduced
price for the fish. Many of the fishermen did not have ready access to the gov-
ernment's Foreshore Fisheries Loan Program.
Fishermen reported low price, lack of transportation, difficulties in receiving
payments, and no market as major problems. The low price was associated with
the method of financing and with the presence of dynamited fish in the markets.
Fishermen desired governmental assistance in loans, technical assistance, and
law enforcement to stop illegal fishing. The fishermen could not foresee an im-
proved level of living unless these problems were alleviated.
CONTENTS
Page
SUMMARY AND CONCLUSIONS -------------------- - - -- 3
IN T R O D U C T IO N ..........------ ....--------- ...................- - ----------------- .- ------ - 5
Previous Research . . - --- 5
More Applicable Research Begun -5
Description of Problem and Limits of the Study 5
R E SE A R C H I D E SIG N --------------------------------------- ...- - --............................ 5
R esearch S ettin g --------------- - ------------------------------------------------ -------- . 5
Sam ple D esign and D ata Collection ......................................... 6
A n a ly sis P ro c e d u re --- .......................................---...................... 6
MARKETING PRACTICES AND PROBLEMS OF
M U N ICIPA L FISH ERM EN ---.---- .-.-------------------------------- ...............-- - -. 6
F is h D isp o s a l ......... ----.. ...... ..... ------------ -- ----------------------... .. ... .. . ..- 7
M arketing of the D aily C atch ..................................................... 7
C hoice of M arket O utlets ----------------------------------------------------------- 8
C o sts of M a rk etin g --------------------------------------------- -------------------------- 9
Financing M unicipal Fishing ---------------------------------- -- ..........-- 9
M arketing P roblem s --- - --------------------------------------------- ---------------- 10
G overnm ental A ssistance .................................. .............- ....-11
L IT E RA T U R E C ITED -- - - ------------------------------------ -----------------------------------.11
APPENDIX-MUNICIPAL FISHERMEN'S QUESTIONNAIRE ------------------ 12
PUBLISHED 11/76-1M
Auburn University is an equal opportunity employer.
COVER PHOTO. Typical Philippine coastal fishing village at high
tide.
ACKNOWLEDGMENTS
Data collection was supported by the Republic of the
Philippines BFAR and NEDA. Data analysis and develop-
ment and printing of this report were supported by AID/csd-
2780 under USAID Project 211-d. Thanks go to. BFAR
Regional Director Jose R. Urbano, NEDA Regional Execu-
tive Director Florendo F. Zablan, and to Mr. Jaime C. de
la Vega. The help of all the BFAR/NEDA personnel who
worked on the data collection is also gratefully acknowl-
edged.
Marketing of Fisheries Products by Municipal Fishermen
in Panguil Bay, Philippines*
M. L. HOPKINS and E. W. MCCOY**
INTRODUCTION
A SPECIFIC DEVELOPMENT PLAN for the fishing industry in
the Philippines has long been considered an essential part
of the national plan for development. A major obstacle to
the preparation of these plans has been the lack of accurate
data, especially in the fisheries sector.
Previous Research
Most of the previous research, dealing largely with mar-
keting of fishery products within the Philippines, was done
by the Special Studies Division of the Department of Agri-
culture and the Bureau of Fisheries and Aquatic Resources.
This research concentrated mainly on marketing of milkfish,
although at least four reports also considered marketing the
catch of municipal fishermen.
Guerrero and Darrah (2) prepared a rather comprehensive
nationwide marketing report on milkfish, including detailed
descriptions of producer and middlemen practices and in-
formation about marketing channels, margins, and geographic
flow. A survey of fish culture practices in Misamis Oriental,
reported by Neri and Winner (4), gave some information
about distances and transportation involved in marketing.
A report by Valiente (5) included the marketing of milkfish
along with marketing of other agricultural products. Vera
Cruz and Carlos described fish marketing in Lamano del
Norte, including both fishpond and municipal catch (6), and
marketing of the municipal catch of freshwater fish of Lanao
del Sur (7). The first municipal survey in Misamis Oriental
(3) gave only brief mention of marketing problems, and a
study by Firth (1) dealt with the socio-economic situation in
two Malay fishing communities, which seems closely ap-
plicable to the Filipino fishing community.
More Applicable Research Begun
To obtain the specific type data needed as a basis for de-
velopment programs, the National Economic and Develop-
ment Authority (NEDA) and the Bureau of Fisheries and
Aquatic Resources (BFAR) joined efforts to conduct a com-
plete survey of the fishing industry in northern Mindanao.
The baseline survey was composed of five major sections:
(1) studies of municipal (sustenance) fishing, (2) fish cul-
ture, (3) fish processing, (4) fishery product marketing,
* This report is derived from the unpublished masters thesis
(1976) of M. L. Hopkins, "Marketing of Fishery Products in
Panguil Bay, Philippines," Xavier University, Cagayan de Oro
City, Mindanao, Philippines, and presented as a contributing part
of USAID Project 2780.
** Research Associate and Associate Professor, respectively, De-
partment of Fisheries and Allied Aquacultures and Department of
Agricultural Economics and Rural Sociology.
and (5) institutional structures (government fishery proj-
ects, taxes, regulations) affecting the fishing industry. Be-
cause marketing has been an especially difficult area in which
to implement changes, special emphasis was given to the
marketing study.
Panguil Bay, a 219-square kilometer fishing area located
on the northwestern side of the island of Mindanao, was
chosen by NEDA-BFAR as the site of the second fishery
baseline survey
1 
in northern Mindanao. The bay was se-
lected because of its shallow nature, in contrast to the deep
water offshore of the province of Misamis Oriental, the site
of the first survey. The bay and its surrounding marsh lands
were reputed to be a major source of fishery products, es-
pecially shrimp, crabs, shellfish, and milkfish (bangus).
Description of Problem and Limits of the Study
This study deals with the marketing of fishery products
by municipal fishermen of Panguil Bay. Specifically, the
study attempts to (1) identify and describe the different
marketing channels used by municipal fishermen, and (2)
determine the factors influencing the choice of marketing
outlets used by these fishermen.
Although the study dealt only with marketing of fishery
products by municipal fishermen in one specific area, findings
should be applicable to other areas of the Philippines and
to other countries with similar artisanal fisheries. The data
are based on a one-time survey and the information is valid
only when considered in the context of the time period of
the survey. Changes appearing over a period of time were
not described because a series of surveys would have been
required to furnish that data.
RESEARCH DESIGN
Research Setting
Panguil Bay is a cocoon-shaped area of shallow water and
muddy bottoms located at latitude 7o57 to 8'12' N. and lon-
gitude 123038
' 
to 123158' E., see map on inside cover. Al-
though technically the water area between Ozamiz City and
Clarin, Misamis Occidental, on the west and Kolabugan and
Maigo, Lanao del Norte, on the east is named Port Ozamiz,
commonly the area is included as part of Panguil Bay and for
purposes of this study was considered such. The bay is sur-
rounded by approximately 8,000 hectares of mangrove
swamps of which an estimated 5,000 hectares has been con-
verted into fishponds. There were an estimated 4,500 mu-
nicipal fishermen in the area catching fish mostly in the
outer portions of the bay (offshore of the other towns in
the area).
SThe survey was entitled "Fisheries Baseline Data Survey of
Lanao del Norte and Panguil Bay."
- ,'~~ in z:sr %iing village a-, ]Cxv i c :Ypical)
1ncme ef municipal 3isherman (bottom).
Admmnistratix elx, the to ct xxas clix iden betxxeen -3 pirox-
inces cox ering 10 municipalities and 2 cities. Theire xxeie
89 coastal barios in the areai. The municipal fisheries. ex-
cept foi genertl conscrx tiiol) regultitions 
from the BF AR,
xxere under the jurisdictioni of their respective municipalities.
The regultion of fishponds xx as split 
betxweel) the BE AR,
for ponds oiil gox erment ltaiid, and 
Municiptal goxveirnments,
for titled fishpond areais.
Ozamiz Citx is the pinmarx commeircial center in the
treti, xxith lli~ran City and Pagtidian City as secondxcv centers.
Ozamiz Citx hals reltitivelx gn oOd accessibility by xxattei trans-
portation. Ilotds in most of the studxv area tire i .n poor
condition.
Culturalyx, the aiea xx\ts a mixtuire of 'Muslims and Chris-
tians xx ith Mluslims concentrated in Koltimbugan tind Kapa-
tagan, Lantin del Noirte, tind Aurorat and Ttimiilig, Zaim-
boanga d~el Suir. During the surxvey sportadic trouble htid oc-
curred in the tarea between) Muslims tmcd Christitms. Ptas-
senger buses xxer e aimbushed tind houses xxere burned, canls-
ing dislocation ot tobtibitants and disrulption of buisiiness tic-
tiities.
Sample Design and Data Collection
For purposes of the mar keting study all 10 municipalities
anld 2 cities adjacent to Paiiguil Btix xxeire suix e r.
Approximatelx 5 peiccnt of the 4,50)0 fisheimen inter-
x iexx ed dluriing the municipal fisheries census conducted by
the N ED A-BEAR suirxex tctams wxeire tisked detailed ques
tions regal ding- marketing tictixvitie s. Supplementtal infoima-
tion xxas collectedi thioughi interx iexxs xxith market officitals
6
an1d offher per sonrnel. involv ed xx ith fish marketing. Local
conditions caused interviexvers to conduct rather hasty 
inter-
vijews in some areas.
Analysis Procedure
The quantitatixve analxysis consisted of the determination
of arithmetic means, pei ccntages, and frequency distribu-
tions. Compar isons between marketing practices in the inner
bax and outer bax wxere made hut dlifferences we rc insig-
iifcant in most cases. Conv entional econometric anaix 
sis
methods, such as re egression, wxere not applicable hecause of
xvariations in market ing from place to place caused by factors
not readily quantified, such as geography, peace and order,
and political restrictions. To facilitate analysis, data were
coded into standard formats and placed oin punch cards. A
card sorter xwas used in handling the cards. Inter-relation-
ships betwseen various mar keting 
practices were determined,
hilt no statistical analxysis of these relationships were made.
MARKETING PRACTICES AND PROBLEMS
OF MUNICIPAL FISHERMEN
The designatin of municipal fishermen xwas essentially an
administratixve classification, hased on the waters used for
fishing. Gertlain wxaters w xere under control of local munici-
palities wxhile others xxere regulated hv the national gov-
erment. A fisherman could theoretically fish in both mu-
nicipal and national wa tters. Ntost of the municipal fisher-
men, howxexver, operated in fr esh or cotistal wxater areas xwith
small xvessels (hoats of less than 3 gr oss tons) or xvithout the
use of hoats. The majoritx of the municipal fishermen in
the study area liv ed at or near the suhsistence lexvel, xxith
cariil genitircly depcndent oil the~ dailx catch. Experience
inl fishing reported by the fishermen rainged from I to 50
years, xwith all average of ahout 16 yealrs. Even though in-
come from fishing only maintained the fishermen at the sub-
sistence lexel, the numher of fishermen remained high. Re-
cruitment had been continuous, as indicated bx data on years
oif fishing experience in Table 1. Eex, alternatixve income op-
portunities existed within the area. The fishermen had rela-
tively large families, wvith ain average of over four dependent
childien. Most of the fishermen lived along the coast, tt the
miouth of rix ers. or on the edge of nipa sxxamps. Fishing xxas
usutillx done at nighlt for stales in the market the tolloxx log
modrni n- Fish catch had declined aecording to both fisher-
0*n
mnen and retailers in the asrea.
TA1iLL 1. IlsiOid. EXPEJULNCE OF MUNICIPA~L FisHER~maN ix-,
P.a NcaUL BAY, PIcIPPINES, 1975
Years of Fishei- 
Percentage of fishermen
fishing men Inner hax 
Outer Total
hay
ANumhc r Percetit Pr rent Percent
1-5 -------- 739 2.3) 31
6-15 ---------- 59 23 24 24
16-25 -------- 67 21 33 27
26-35 --- --- - 30 12 13 12
36-45 ------ ----- 71 4 2
46-50 ----- 9 4 3 4
TOTAL ---- 249 100 100 100
Problems of Fishing
Mtany of the problems listed by municipal fishermnen xvere
dir ectly related to limiterd catch. Since dlaily income xwas
dletermined bv size of the catch, anm reduction in catch
xwould directly result in a loxxer lexvel of livinu. Problems
leading to or associated with reduction in catch were dv-
namite fishing, poisoning, use of illegal gear, and overcrowd-
ing of the fishing area. The relative importance of each
problem varied by area, Table 2. In the outer bay, especially
among fishermen from Clarin, Ozamiz Citv, and Maigo,
dynamite fishing was reported as the direct cause of reduced
catches. Within the inner bay near Aurora, Tambulig, Lala,
and Bonifacio, the use of poisons was listed as a primary
cause for low catches. Reports of low catch due to poisons
were in areas where fishpond production was practiced. Fish-
pond operators are known to use endrin and other highly
toxic pesticides to eradicate unwanted fish in their ponds.
In addition, many also use a molluscocide to eliminate snails
as competitors for pond food. Municipal fishermen thought
that, when ponds were drained, the poisonous materials en-
tered the bay and reduced shellfish population.
The use of illegal fishing gear was reported as a major
cause for reduced catch by municipal fishermen in Tangub
City and Kapatagan. Commercial fishing vessels were not
allowed in the bay; however, municipal fishermen in these
Problems
Lo catch
Dynamite fishing _
Poisons
Illegal gear
Overcrowding of gear-
Lack of capital __
No problem .... ..
Others
TOTAL ....... .
Fishermen reporting
Inner bay
Percent
26
3
P
Outer bay Whole area
Percent Percent
11 19
31 15
5
12 13
3
15 17
16 14
15 14
100 100
areas reported small shrimp trawlers were in operation. Over-
crowding of the fishing grounds with too many fish corrals,
filter nets, and other stationary devices was reported as the
reason for lowered catches in Tubod. These reasons were
listed most often by older fishermen.
Too few catch statistics were available to verify the
comparative position of present fishermen to those of the
past. The population of the area had increased with an
associated increase in demand for fish products. Whether
the number of fishermen increased faster than the increase
in population cannot be determined. The fish mass sup-
ported by the bay ecosystem probably remained relatively
constant over time. However, carrying capacity of the bay
max have increased because of the heavier nutrient runoff
associated with growth in population. Despite changes in
population and market for fish, the level of fish catch for
municipal fishermen only allowed them to exist at the sub-
sistence level. In addition, they perceived factors contribut-
ing to a general worsening of this relative level.
Fish Disposal
Although the survey was conducted among municipal fish-
ermen whose livelihood was based on catching and selling
fresh fish, the diets of their families consisted primarily of
corn grits with dried or salted fish and a few vegetables.
Among the respondents, 61 percent sold their entire catch,
Table 3. Since manx fishermen borrowed capital, the 
fish
represented collateral to the lender. The immediate cash
needs were readily apparent. Only 8 percent of the fisher-
men consumed the entire catch. Fishermen who consumed
the catch reported renting or borrowing a boat for a few
hours. Others used cast nets near the mouth of rivers or in
the sea during low tide. These fishermen were seeking fish
to supplement the diet. In general, the catch per unit 
effort
was low, averaging only a few kilograms per fishing trip.
TABLE 3. DISPOSITION OF THE DAILY CATCH BY MUNICIPAL
FISHERNIEN IN PANGUIL BAY, PHILIPPINEs, 1975
Fish disposal
Eaten
Sold . ... . . .
Processed - -
Part eaten part sold
TOTAL ..... ...
TOP-dugout canoe (banca) with filter net (sanggab) 
supported
by bamboo Doles; CENTER-shrimp fishermen on river with shrimp
traps; BOTTOM-dugout canoe (bonca) with kerosene lamps 
for
night fishing.
Fishermen reporting
Inner bay Outer bay Whole area
Percent Percent Percent
10 8
63 59 61
1 1
26 34 30
100 100 100
Marketing of the Daily Catch
The municipal fish were sold within a few hours of catch
by 82 percent of the fishermen. The place of sale varied by
TABLE 2. FISHIxG PROBLEMS OF \IICIPuAL F-StERiEN IN
PANGUIL BAY. PHILIPPINES. 1975
TA13LE 5i. Fiso SORTING iY '\I INI(5PAL FSnLO\ILN, IN PASNII
BAY. PIIcPPINES. 1975
Sorting
None ..
By species -
By type ...
By size -
By quality _
Complete
TOTAL ..
Fishermen reporting
Inner bay Outer bay Whole area
Percent Percent Percent
28 53 40
31 4 19
14 14 14
23 26 24
1 1
3 1 2
100 100 100
TABLE 6. BASIS OF SALE OF FISH BY MUNICIPAL FISHENRMEN IN
PANGUIL BAY, PHILIPPINES, 1975
Basket of uyap (goby fry) with a few small fish caught from
filter nets and trawls.
bay area, Table 4. Both inner and outer bay fishermen sold
the largest proportion of their fish on the beach. The second
most important place of sale was directly at the market for
inner bay fishermen and at sea for outer bay fishermen.
Several retailers and wholesalers utilized boats to pick up
catches from fishermen on the fishing areas. In this manner
the buyers were able to avoid competitive bidding on the
beach. In the inner bay, 17 percent of the fishermen de-
livered the fish to the dealers' home. Fisherman who bor-
rowed money from dealers were often required to transport
the fish to thle lender.
Fish were sold to both retailers and wholesalers. Sorting
of fish was seldom dlone for sales to retailers since the catch
was usually of the same species and about the same size,
Table 5. Retailers customarily bought sardines, anchovy,
and other smaller fish. Wholesalers required sorting of fish by
size and type before purchase. The wholesalers then offered
a price for each lot. Fishermen often sold the larger fish to
wholesalers and the smaller were retained for retailers, door
to door sales, or home consumption.
Over 60 percent of the fishermen reported using weight
as the basis for sale, Table 6. No scales were available on
the beach, however, so weight was estimated. A common
practice was sales by pail. A number 6 pail was estimated to
hold 2i,' kilograms and a number 8 pail held 4 kilograms.
Although the seller estimated the weight of the fish and
price was stated in pesos per kilogram, the effective means
on the beach was per ponduk (pile). For fishermen who
delivered fish to the buyer's house, scales were used to de-
termine the weight of catch. The fishermen who did not sell
by weight used stringer, piece, or pile as the unit of measure.
None of the measures was standardized, thus price varied
TABLE 4. PEBCENTAGE OF MfUNICIPAL FISIEBRrEN'S SALE BY
LOCATION, PANGUIL BAY, PHiILIPPINEs, 1975
Place of sale
Sea-
Beach
Road
Market
Door to door
Dealers' home ...
Others
TOTA-
Fishermen reporting
Inner bay Outer bay Whole area
Percent Percent Percent
8 19 12
37 51 43
3
8
9
4
15
8
10
1008
100
Basis of sale
Piece
Kilo
Pile
Stringer .. ....
Kerosene can
P ail ... .. .. .
1-quart can
Others
TOTAL _
Fishermen reporting
Inner bay Outer bay Whole area
Percent Percent Percent
6 5 6
63 60 61
5 6 6
6 3
4 2
10 24 16
1 1
5 5 5
100 100 100
widely from unit to unit depending on the type, condition,
and quantity of fish contained in the measure.
A portion of the catch was not sold immediately. Because
of poor fishing, marketing conditions, or other reasons, some
fishermen were unable to sell the fish fresh in the morning
market. The carry-over fish were preserved by cooking, salt-
ing, or drying. That preserved by cooking usually included
some fish that remained unsold after the morning market,
and these were normally sold in the market the same day.
The price typically was per piece. Quality of the cooked
fish was reduced since they had been out of the water for a
relatively long period. Fishermen who caught only a small
amount often dried the catch until the accumulation was
large enough to market. The dried fish was used by cus-
tomers in the same manner as fresh fish.
Some of the shellfish gathered in the inner bay near
Tangub City and Lala were salted and packed in reclaimed
kerosene cans for sale. The salted shellfish represented a
specialty product in the market and sold for a higher price.
The system of financing, custom, and location all influ-
enced the sales of fishermen. Wholesalers tended to purchase
larger species that were preferred by consumers, while re-
tailers purchased smaller, less preferred species. The anomaly
of wholesaler-retailer purchasing practices was due to the
resale practices of the buyers. Most large, high quality fish
were exported from the area to larger cities. The local re-
tailers sold only the lower quality and smaller fish.
Choice of Market Oulets
The need for immediate cash for daily expenses was the
reason most frequently given by municipal fishermen for
choosing market outlets. Municipal fishermen sold mostly
to retailers, Table 7, who were preferred because they paid
cash. Retailers also usually picked up the catch at the
beach. Wholesalers paid a higher price for preferred species,
but often paid weekly or every 2 weeks. Wholesalers ad-
vanced credit to fishermen in order to receive the catch for
TABLE 7. BUYERS OF THE MUNICIPAL CATCH IN PANGUIL BAY,
PHILIPPINES, 1975
Buyer Fishermen reporting
Inner bay 
Outer 
bay 
Whole 
area
Percent Percent Percent
Retailer 57 70 63
Equipment owner .......... 3 1 2
Consumer 11 13 12
Friend 1 1 1
Relative 1 1
Private creditor .............. 15 2 9
S u k i ---------------------------------- 1 0 4 7
Others-------------2 9 5
TOTA L ......................... 100 100 100
debt repayment. The highest price was received from direct
sales to consumers. Only limited consumer sales could be
made on the beach and most fishermen did not want to
incur the cost and risk involved in door to door or market
selling.
The price for fish was established in different ways. In a
few areas where retail buyers were numerous, the price was
established by competitive bidding. Little collusion seemed
to exist between buyers in these areas and prices to fisher-
men were higher. When fishermen and buyers could not
agree on a price, fishermen often marketed the fish directly
to consumers. This system only prevailed in areas where
fishermen had easy access to towns. Fishermen who bor-
rowed money from the buyer often had to depend on the
buyer to set the price. In these instances, prices received
were lower than prices paid to fishermen not using buyer
capital.
The price mechanism normally equates supply and de-
mand for a market. Over time, low prices will normally
drive fishermen out of the market and the remaining fisher-
men can make adequate incomes. This has not occurred in
the study area, however, even though prices only allowed
fishermen to maintain a bare subsistence level of living. This
lack of movement out of fishing reflects the absence of al-
ternative employment opportunities.
Costs of Marketing
Fishermen incurred few costs in marketing the catch.
Those who sold to buyers on the beach had no cash costs,
except in the outer bay where a method of taxation known
as cash tickets was used. The amount of tax was dependent
on the quantity of fish sold. Most fishermen did not pay
the tax, and for those who did, the amount was minimal.
Fishermen who delivered the catch to buyers also did not
expend any funds for marketing. Fish were transported on
strings or in cans that were used in the fishing operation. In
most instances, buyers lived near the fishermen so extra
travel was not involved. Fishermen who sold the product
in the retail market did incur some expenses for packaging
and transportation. Since fishermen who marketed fish lived
close to town, the distance was not excessive. Packaging
consisted of banana leaves and cost less than 5 centavos per
kilo of fish wrapped. Basically little more than the time of
the fisherman or wife was involved. Alternative uses of the
time were limited, which made marketing essentially cost
free even when non-cash costs were included. The returns
for direct marketing of fish were substantial. Consumers
consistently paid about P1.00 more per kilogram for fish
than did retailers, Table 8. The consistent 1 peso markup
may have developed historically since it had little relation-
ship to actual costs involved in marketing the product. As
TABLE 8. PRICES PAID TO MUNICIPAL FISHERMEN FOR SELECTED
TYPES OF FISH BY RETAILERS AND CONSUMERS, PANGUIL
BAY, PHILIPPINES, 1975
Type of fish Condition Price/kg, by buyer*
Retailer Consumer
P P
Grouper, snapper, etc.---. fresh 4.25 5.25
Sardine, anchovy, etc.---. fresh 2.25 3.25
W hite shrimp ................ fresh 5.25 6.25
Pink shrimp fresh 4.25 5.25
Crabs (small) ---------------- alive 2.50 3.50
* U.S.$ = P7.40.
a percentage, the retail markup ranged from 20 percent on
white shrimp to 40 percent on small crabs. The presence
and maintenance of a relatively rigid marketing margin in-
dicated the influential role played by intermediate buyers.
The retailers were operating as price setters rather than price
receivers. Demand at the retail level was sufficient to gen-
erate high prices. However, the market sector (both whole-
sale and retail) was able to extract profit margins before
passing the reduced price to the fishermen. Forces other
than competition were at work in the market system.
Financing Municipal Fishing
Fish marketing was closely associated with the seasonality
of fishing in the area. During the monsoon season, fishing
activity nearly ceased. During this period many fishermen
subsisted on suki, a type of loan agreement whereby the
lender had first refusal on the catch of the borrower. In ef-
fect the catch represented collateral for the loan. Since the
loan was made prior to the fishing season no price for fish
was established. As a result, most of the fishermen with
this type of lending agreement received lower prices for
fish. The arrangement was made by both wholesalers and
retailers. The wholesalers often provided equipment and
supplies necessary to catch larger and better quality fish
with the understanding that the product would be sold to
the lender. Most municipal fishermen in the area owned
boats and fishing equipment. Cost of the gear varied from
less than P10 for small traps to more than P10,000 for small
trawls and stationary bag nets. Daily operating costs varied
according to type of gear used, type of fish caught, location
of fishing grounds, and length of time fishing.
A majority of the fishermen supplied their own capital
while 35 percent borrowed from banks, Table 9. The De-
velopment Bank of the Philippines supplied most of the
bank capital through the Foreshore Fishermen Loan Pro-
gram. In this program, fishermen banded together in groups
of five, each fisherman with unlimited liability, and re-
ceived loans. The bank required a chattel mortgage on the
TABLE 9. SOURCE OF FINANCING FOR MUNICIPAL FISHERMEN
IN PANGUIL BAY, PHILIPPINES, 1975
Fishermen reporting
SoreInner bay Outer bay Whole area
Percent Percent Percent
Self ................ . 54 51 53
Bank -- 29 43 35
Relative - - 1 - < 1
Friend .... ........ ... 1 1
Equipment owner ...... 3 1 2
Suki ....... 7 2 5
Private creditor ........ 4 2
None -1 < 1
O thers ......... - ....... -1 2 1
TOTAL ............. 100 100 100
-9
boats as loan collateral. Loans with the unlimited liability
provision have had a poor performance history in other
countries. Even though fishermen were utilizing the pro-
gram, other types would be preferred, such as loans to in-
dividual fishermen or limited liability loans to groups. Addi-
tional loan funds were borrowed from such sources as friends,
relatives, retailers, wholesalers, and equipment dealers.
A uniform 12 percent interest rate was charged by the
bank for capital loans. Repayment was in monthly install-
ments. No interest was charged by other lenders, who re-
ceived payment on a daily basis in kind. In effect, lenders
extracted an interest rate by allowing a lower than market
price for fish products used in repayment.
The source of loans for capital was highly dependent on
the location of fishermen. Fishermen in Ozamiz City, Tangub
City, Kolambugan, and Clarin borrowed from the bank,
while fishermen in other areas used other sources for loans.
The bank was located in Ozamiz City and did not have
branches or fishermen loan officers operating in other areas.
Most fishermen in other areas did not have ready access to
the bank loan program.
In addition to loans for capital items, fishermen also bor-
rowed for operating expenses. Most of these loans were in
the form of food, dry goods, gasoline, bait, and other fishing
items. The loans were almost exclusively from fish buyers
or equipment dealers and were repaid on a daily basis in kind.
Due to the extended low income non-fishing period, many
of the fishermen were perpetually in debt to lenders. The
daily catch often was insufficient to repay daily loan costs.
Thus, the anomaly of fishermen who subsist on corn grits, a
few vegetables, and unmarketable fish in an area that ex-
ports fish to larger towns.
Marketing Problems
Marketing problems reported by municipal fishermen high-
lighted the funding arrangements. Among the top four prob-
lems listed, three were directly associated with suki. The
problems, in order of importance, were: low price, lack of
transportation facilities, difficulty in receiving payment, and
no markets, Table 10.
The low price problem differed between inner and outer
bay fishermen. Inner bay fishermen reporting low price
were also those financing by suki. Wholesalers who pur-
chased the inner bay products sold to markets away from the
area and delivered fish only once or twice a week. Prices
were relatively stable in the larger cities because of constant
supply of fish. In contrast, prices were relatively volatile in
the local markets since they were dependent on the daily
catch. Wholesalers purchased on the basis of the price in
the large city market and were assured of a local supply of
fish because of the credit arrangement. In periods of short
TABLE 10. MARKETING PROBLEMS OF MUNICIPAL FISHERMEN
IN PANGUIL BAY, PHILIPPINES, 1975
Fishermen reporting
Problems of sale
Inner bay Outer bay Whole area
Percent Percent Percent
Low price 20 24 22
Transportation ....... 12 ... 6
Difficulty in
receiving payment .. 1 5 8
No market- ............ 3 3 3
Ice -...... ............ 3 1
None -.... 57 65 61
Others-------- . 7 4
TOTAL 100 100 100
supply in the local area, the wholesaler's price could be sub-
stantially lower than the local market price. In periods of
excess the wholesalers paid the local market price, thus
sellers to wholesalers never received more than the local
market price and often received less.
In the outer bay, municipal fishermen had to compete
with illegal types of fishing. The market was frequently
glutted with species resulting from the activities of dy-
namiters. The price was reduced for all types of fish at
these times. A fundamental economic law states "cheap
goods drive dear from the market." The dynamited fish
represent cheap goods and fish caught in the traditional
manner could only be sold at the same price. During periods
when dynamited fish were available, the daily income for
municipal fishermen in the outer bay was driven below the
subsistence level, creating an even larger debt load. With
lower prices the fishermen tried to increase the catch to
maintain income. However the catch could not be substan-
tially increased using traditional methods. The fishermen
seemed to face an unsolvable paradox. Low prices begat
increased supply or increased debt, which in turn led to
lower prices. In some instances the fishermen had to resort
to illegal fishing methods to survive in the marketplace.
The second major marketing problem was lack of trans-
portation, which limited the market options for the fisher-
men. The problem was especially prevalent for fishermen
in the inner bay. The road was located at a considerable
distance from the shoreline, especially in Bonifacio, Tambulig,
and Aurora. Fishermen in Bonifacio and Aurora had to
travel by boat up one of the larger rivers that separated the
shoreline from the road. In other areas the peace and order
conditions disrupted transportation systems.
Transportation represents a vital linkage between pro-
ducers and markets. With inadequate facilities a market
glut can exist in one area while shortages exist a short dis-
tance away. Transportation costs also can assume a dom-
inant role in the market price structure. In evaluating any
program to alleviate the situation of municipal fishermen,
the role of the transportation system in the fisheries infra-
structure must be included.
The third major marketing problem was difficulty in re-
ceiving payment for the catch. Fishermen sold to retailers,
wholesalers, and consumers, with the buyer often being a
friend or relative. In addition, the close knit traditional
Philippine society had a tradition of sharing. Friends with-
out fish expected to share in the catch of more fortunate
fishermen. Because of the day to day income flow, payment
to fishermen was often delayed while more pressing pay-
ments to other creditors were made. The practice was rooted
within the societal system and existed for other types of
production as well. The system tended to reduce initiative
among fishermen. Some fishermen expressed an awareness
that increased catch effort on their part would be borrowed
to subsidize fishermen who were less resourceful or indus-
trious. In effect, it was difficult for an individual fisherman
to prosper by his own efforts.
Even though the area was deficient in fish products, some
producers occasionally could not market the catch. Fish were
traditionally purchased early in the morning for marketing
that day. Late arrivals at the beach sometimes missed the
buyers. Also at intervals throughout the year, oversupply
from outside the area (primarily Illana Bay) was sold in
local markets. When the lower price outside fish were avail-
able, buyers did not purchase the local catch. When the
catch was not purchased fishermen attempted to barter the
10
catch for other needed products. Some of the catch was
dried and much was consumed. Debt payments were not
met for non market days. Failure to meet payments re-
quired higher repayment during periods when fish were
marketed.
Governmental Assistance
The fishermen were queried regarding possible sources of
governmental assistance. Three suggestions were mentioned
most frequently: provision of capital, provision of technical
assistance, and law enforcement to stop illegal types of fish-
ing, Table 11. Some fishermen were taking part in the For-
shore Fisheries Program; however, many were not aware
of the program. About 58 percent of the fishermen thought
catch, and thus income, could be increased if they had
sufficient capital to improve their equipment. Coupled with
the desire for additional capital was a need to change the
restrictive terms of repayment that exist under suki. In other
agricultural loan programs in the Philippines there has been
a tendency for borrowers to consider the loan as a grant.
Repayment to the government lending agency has not always
been forthcoming. The questionnaire did not include moti-
vational sections; however, fishermen's comments indicated
the same problems might exist for capital loans. A need for
any governmental loan program to municipal fishermen is
that responsibilities of the borrower should be clearly ex-
pressed. In other countries and for other crops in the Philip-
pines, a form of "supervised" credit is used to assure that
loan proceeds are utilized for the purpose intended. 
Other
means can be used to obtain the same ends.
Improvements or changes in fishing equipment would re-
quire changes in fishing methods. The fishermen expressed
a desire for technical assistance. Such assistance at the local
TABLE 11. TYPES OF GOVERNMENTAL ASSISTANCE DESIRED BY
MUNICIPAL FISHERMEN IN PANGUIL BAY, PHILIPPINES, 1975
Government help Fishermen reporting
Government help
Inner bay Outer bay Whole area
Percent Percent Percent
Provide capital --------- 59 58 
59
Stop illegal fishing 17 21 
19
Technical assistance-_ 9 4 
7
Allow illegal gear ------ 4 
2
Nothing -------.-.-- ........------ 10 15 
12
Others ---------------------- 1 2 
1
TOTAL ---..-.------...------- 100 100 100
level would include instruction in use of gear, maintenance
of equipment, fishing methods, and other aspects of use of
the new techniques. Recognizing the continual problems in
marketing of the catch, fishermen also sought technical as-
sistance in forming marketing associations and other means
to stabilize sales of the product. The existing practices were
leading to a continual decline in their level of living. They
could not foresee an improved situation for themselves or
for their children in the future. A possibility which must be
further studied is that the fish stocks are severely depleted
from intense over-fishing and may require a drastic program
to reduce the fishing pressure. This could necessitate the
transfer of some fishermen to other occupations.
Fishermen perceived the government as the court of last
resort. Essentially all fishermen desired development of an
effective governmental program to suppress illegal fishing
activities, since such activities affected them in both catch
and marketing. Both dynamiting and trawling activities were
thought to decrease the supply of fish available for municipal
fishermen. In addition, the large supplies of fish harvested
by illegal means depressed market prices and reduced in-
come for the municipal fishermen.
Literature Cited
(1) FmTH, RAYMOND. 1966. Malay Fishermen, Their Peasant
Economy. Routledge and Kegan Paul LTD., London. 398 pp.
(2) GUERRERO, C. V. AND L. B. DARRAH. 1975. Bangus Market-
ing, 1974. Special Studies Div., Philippines Dept. of Agr.
Pub. 75-2. 34 pp.
(3) HOPKINS, K. D. 1975. Municipal Fisheries in 
Misamis Ori-
ental. Region No. 10 Fishery Inventory Survey Report No. 2.
BFAR Reg. Off. No. 10, Cagayan de Oro City, Philippines
Mimeo. 12 pp.
(4) NERI, C. C. ANDG. L. WINNER. 1974. Fish 
Culture in The
Fisheries of Misamis Oriental. ed. J. de la Vega and K. D.
Hopkins. BFAR Region No. 10 Fishery Inventory Survey Re-
port No. 1. BFAR Reg. Off. No. 10, Cagayan de Oro City,
Philippines Mimeo. 60 pp.
(5) VALIENTE, A. M., JR. 1975. Marketing of Major Agricultural
Products in Iloilo Province. Special Studies Div., Philippines
Dept. of Agr. Pub. 75-11.
(6) VERA CRUZ, W. C. AND I. P. CARLOS. 
1974. Marketing of
Major Agricultural Products in Lanao del Norte. Special
Studies Div., Philippines Dept. of Agr. Pub. 74-32. 75 pp.
(7) -------- -- --....- -- 
- . 1974. M arketing of
Major Agricultural Products in Lanao del Sur. Special Studies
Div., Philippines Dept. of Agr. Pub. 74-27. 59 pp.
11
APPENDIX-MUNICIPAL FISHERMAN'S QUESTIONNAIRE
Barrio Municipality/City 
Province
Name Address 
Status
If married, name your children 
below 21 years old.
1. How many years have you 
been fishing?
2. What are your major problems 
in fishing?
3. Did you receive help from any 
government agency related
to your fishing activities? 
( ) Yes ( ) No. If yes,
give the date, name of the agency 
and type of help ex-
tended.
4. Are you a member of cooperative 
organization? ( ) Yes
( ) No. If yes, name 
the organization and your 
reason
for joining.
5. What can the government 
do to help you improve your
fishing activity?
6. Where did you get your 
capital? ( ) Bank ( ) 
Private
person (please specify) 
Why?
7. What is your arrangement 
regarding:
a) Catch sharing
b) Yearly interest
c) Nature of payment
d) Payment schedule
8. When do you usually 
fish? ( ) morning 
( ) night.
9. How do you dispose of your catch?
Method 
Percentage of catch
Eaten 
(_ 
_
Sold 
(_)
fresh 
(_ 
_
cooked 
(_)
dried (_)_--
salted (_ 
_
Other (please specify)
For fish which are sold:
10. Do you sort your catch? ( )Yes 
( )No. If yes, how?
11. Where do you sell your catch?
sea ( ) beach ()road 
()market
door to door ( ) dealers 
home
others (please specify)
12. How do you sell your catch?
piece ( )pile 
()kerosene can
1 qt. can ()kilo ()stringer 
()pail
others (please specify)
13. When do you sell your catch?
4 hours after catching
6 hours after catching
8 hours after catching
) 10 hours after catching
) 12 hours after catching
14. To whom do you sell your 
catch?
retailer ( ) equipment owner 
( ) suki
private creditor ( ) consumer 
( ) friend
relative ( ) others (please 
specify)
15. What is the selling arrangement?
delivered by fishermen ( ) picked 
up by buyer
contract ( ) consignment
16. What is the payment arrangement?
( cash ( )installment
number 
of installments
credit
time of payment
17. How much profit do you 
usually receive per kilo?_
18. What are your marketing problems?
19. What are your suggested 
solutions to the marketing
problems?